Question 1. The three most common cost behavior classifications are _________.
- variable costs, product costs, and sunk costs
- fixed costs, variable costs, and mixed costs
- variable costs, period costs, and differential costs
- variable costs, sunk costs, and opportunity costs
Question 2. Most operating decisions of management focus on a narrow range of activity called the ________.
- relevant range of production
- strategic level of production
- optimal level of production
- tactical operating level of production
Question 3. Ingram Co. manufactures office furniture. During the most productive month of the year, 3,500 desks were manufactured at a total cost of $84,400. In its slowest month, the company made 1,100 desks at a cost of $46,000. Using the high-low method of cost estimation, total fixed costs are ________.
- $56,000
- $28,400
- $17,600
- cannot be determined from the data given